Premium denim apparel vendor True Religion Apparel Inc.’s 75.6 percent leap in third-quarter profits blew past analysts’ estimates and prompted an increase in its full-year guidance.
For the quarter ended Sept. 30, the jeans and sportswear marketer reported net income of $15.4 million, or 64 cents a diluted share, compared with $8.8 million, or 37 cents a share, in the same year-ago period. Net sales were up 63.9 percent to $79.4 million, from $48.4 million. Analysts polled by Yahoo expected earning per share of 47 cents on sales of $65.8 million.
By division, U.S. wholesale sales increased 53.8 percent to $46.3 million from $30.1 million a year earlier, while international sales grew 3.2 percent to $11.2 million from $10.9 million. Direct sales almost tripled to $21.5 million from $7.2 million.
Quarterly gross margins increased to 58.4 percent of sales, aided by the segment shift mix toward the company’s direct business, which was partly offset by increased sales of previous-season merchandise. The year-ago gross margin was 57.2 percent.
“Our financial position continued to strengthen as we ended the quarter with $55.8 million in cash and cash equivalents, and no debt,” said Jeffrey Lubell, chairman, chief executive officer and creative director. “We are especially pleased with our ability to help fund our growth through our strong operating cash flow.”
The company projected EPS to be $1.78 for the year, up from between $1.61 and $1.65, and for revenue to be about $265 million, up from $242 million. Analysts are looking for earnings of $1.65 on sales of $247.8 million.
For the nine months, the Vernon, Calif.-based firm posted a 67.3 percent increase in net income, to $31.7 million, or $1.31 cents a share, from $18.9 million, or 79 cents a share. Revenue grew 63.4 percent to $197 million from $120.5 million.
The firm;s U.S. sales rose 47.3 percent to $117.2 million, from $79.6 million, while international grew 24.1 percent, to $28 million, from $22.5 million. Direct sales almost tripled to just less than $51 million, from $17.8 million.
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews